| The
property market has seen a 360 degrees turn since the
90s. Purchasing a house to the common man before 1994
was undreamable. The tax structure and the cost of property
was exorbitant. People preferred to live in rented homes
than purchase a house.
But
the property market began to float from its drowning
position after 1995. This was due to the increase
in incomes that allowed people to go ahead and purchase
a home. To trigger it further cheap home loans were
made available. Competition from peer banks led to
offer lower interest rates. While nationalized and
co-operative banks offered the lowest interest rates.
In
the beginning in Mumbai people were reluctant to purchase
a home in suburban areas. But with improvement in
infrastructure of Navi -Mumbai, new expressways in
the suburban areas people are now moving out to the
suburbs. Moreover every suburb is getting self-sufficient
making suburbs an even mover viable option.
However
although the Indian property market seems to be gaining strength
supported by hiking stock prices Mumbai city is loosing
importance over the other better rated cities like
Delhi, Bangalore and Hyderabad. This is due to excess
congestion and lack of urban renovations.
In
the commercial segment of
India's construction,
quality supply is putting pressure on rentals. You
have to provide the best infrastructure else the tenant
will move on to get something better as it is already
available. With malls spilling all over the place,
the best in quality will gain the renter and the tenant
the best in prices.
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